Seeking Alpha

QTS Realty plans IPO

  • QTS Realty, an owner/operator of data centers, is planning an IPO. The company filed an S-11 registration earlier today.
  • QTS Realty plans to IPO under the REIT tax structure.
  • A placeholder value for an offering of up to $300M was included in the S-11, but the amount of shares offered and the price have not been disclosed.
  • Fellow data center REIT CyprusOne (CONE -1.3%) raised $361M in an IPO back in Jan. Its stock is down 4.4% since then.
  • Other data center stocks performed well in 2012 but have slumped thus far in 2013: (EQIX) -22.9% YTD, (DLR) -21.1% YTD, (DFT) -9.4% YTD, and (INXN) -0.5% YTD.
  • Analysts are concerned over rising capex and falling rental rates. Simultaneously, larger companies like Amazon and Google are building their own data centers. This might reduce demand in the space not only from the data center builders themselves, but also from companies relying on the cloud infrastructure services (e.g. Amazon Web Services) offered by some of them.
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